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Performance: Environmental Stewardship
Achieve zero net direct greenhouse gas emissions
Reduce indirect greenhouse gas emissions from electricity consumption
By 2012, achieve 50% of our long-term goal of zero net direct greenhouse gas emissions through a combination of reductions, efficiencies, and offsets
By 2013, reduce electricity consumption of existing assets by 10% compared to 2006 baseline in existing assets
Our approach to mitigating greenhouse gas emissions includes long-term goals for both direct and indirect emissions. While we have different medium-term targets for these two types of emissions, they both drive programs that reduce greenhouse gas emissions. Our strategy for meeting these goals follows the hierarchy of avoiding emissions, reducing emissions through efficiencies, replacing high-carbon fuels with low-carbon alternatives, and then using high-quality offsets for our remaining direct emissions.
Disney has pursued energy efficiency upgrades and programs for a long time. Energy efficiency projects offer opportunities for financial savings in addition to environmental benefits. In 2008, we established a corporate goal of reducing electricity consumption in existing assets by 10% by 2013 over a 2006 baseline. This target has driven the installation of energy upgrades and the development of energy efficiency policies and programs. As a result, Disney assets, from 2007 to 20121 have saved a cumulative total of 647 million kilowatt-hours relative to 2006. In 2012 we decreased electricity use by 10.04% compared to 2006. The bulk of these savings, about 521 million kilowatt-hours, occurred after the corporate goal was published in 2009. These cumulative savings are greater than the combined annual electricity consumption of Disneyland Resort in California, Disneyland Paris, and Hong Kong Disneyland.
In terms of indirect emissions, from 2007 to 2012, our energy efficiency portfolio of projects resulted in cumulative savings of 280,000 metric tons of carbon dioxide equivalents relative to 20062, or 226,000 metric tons over 2009 to 2012. These savings were achieved through a variety of projects at various locations spanning resorts, attractions and office buildings at various assets around the world. For example, variable frequency drives were installed on air handling units and attraction pumping systems at multiple locations throughout our theme parks. Thermostat and logic modifications were made at the Pop Century Resort and All Star Resort at Walt Disney World, the Sequoia Resort at Disneyland Paris, and Disneyland Hotel at Disneyland. New heat pumps were installed at the Hollywood Hotel in Hong Kong Disneyland, and the compressor plants at Disneyland were automated to drive efficiency in operation. Lighting retrofits were made at many theme park and resort properties converting hotel, attraction, facility, and show lighting to more efficient high-intensity discharge lamps, CFL, and LED. Energy management system upgrades occurred at our U.S. theme parks and our offices in Burbank and London. Our data center facilities have also demonstrated energy savings through enhancements in hardware technology such as blade servers and virtual servers, as well as by implementing airflow management strategies to improve the efficiency and effectiveness of data center air conditioning systems.
|Our new parking structure in Glendale, California, was installed with a 460kW solar system that provides 12% of the energy use for the new building and its parking structure.|
Our facilities teams will continue to pursue opportunities to maximize the financial and environmental benefits of such projects. Chart 3 shows the pattern of electricity consumption from 2006 to 2012. While the efficiency target applies to existing assets, new assets in the Company now follow a sustainable design process to incorporate cost effective new technologies into building design. We have incorporated an environmental review step into the process for authorizing capital for new projects to ensure that efficiency measures are adequately evaluated and included from the beginning. As an example, for our Glendale Creative Campus expansion completed in 2012, sustainable measures have reduced building energy demand by more than 30% below that of a typical office. Also, more than 12% of energy used by the campus expansion is provided by a photovoltaic system on top of the parking garage.
Click on the image below to enlarge: See footnotes 3,4
Disney’s direct emissions decreased slightly from 2006 to 2010, and then increased in 2011 and 2012. This was an expected increase, due to the addition of two new cruise ships, Disney Dream and Disney Fantasy. The two new ships have a number of state-of-the-art energy savings features built into them, as described here. Because of these energy savings features, the new ships use only slightly more fuel per voyage than the existing ships, even though they carry 50% more passengers.
With the addition of the two new ships, the direct emissions footprint increased significantly, as illustrated in Chart 4. In 2008 and 2009, when the emission targets were being devised, the two new ships were already under construction, and we were aware that the emissions were set to increase. Our plan to meet the target of achieving 50% of the long-term goal of zero net direct greenhouse gas emissions involved the following:
(a) Place an internal price on carbon to encourage environmental innovation
Each of our businesses is charged for its proportion of the Company’s overall direct emissions footprint. The higher the carbon footprint, the more they pay. We have built this into our capital planning process as well, so businesses have to take the price of carbon into account while planning new projects. The additional operational cost has started to incentivize businesses to seek methods to reduce their impact. While a technological breakthrough has not yet occurred in the cruise business, this additional cost has accelerated research for such solutions. Our cruise business has tasked our Imagineers in research and development with the task of identifying cleaner fuel options.
(b) Initiate forestry projects to sequester carbon dioxide, or purchase offsets from industrial projects
Since 2009, we have initiated a variety of forestry projects, in collaboration with trusted conservation partners, such as Conservation International and The Nature Conservancy, to reduce and sequester carbon dioxide. In addition, we have purchased a smaller percentage of carbon offsets from other projects (i.e., energy efficiency, livestock gas capture, etc.).
Investing in forests is a natural solution for sequestering carbon efficiently and cost-effectively while providing many other valuable benefits. Beyond climate benefits and habitat conservation, the forest provides other critical ecosystem services such as regulating water and preventing soil erosion. Forestry projects are one of the most effective ways to combat climate change, improve the livelihood of local communities and protect threatened biodiversity.
In 2012, our direct greenhouse gas emissions footprint was 867,353 metric tons of carbon dioxide equivalents (CO2eq). To meet our 2012 direct greenhouse gas emissions target, we “retired” 433,677 metric tons CO2eq in carbon credits, generated by a Conservation International avoided deforestation project Disney helped initiate in Peru. The project has been independently assessed by the world’s leading standards, with the carbon reductions certified through the Verified Carbon Standard, and the social and environmental co-benefits certified through the Climate, Community, and Biodiversity Standard.5
Click on the image below to enlarge: See footnotes 6,7
In addition to forest conservation in Peru, we have initiated or supported a variety of other forest carbon projects, including improved forest management and reforestation projects. These projects will continue to generate quantifiable carbon benefits in the coming years. Chart 5 shows the location of the projects we have initiated or supported since 2009.
Also in 2012, Disney joined other leading companies to make forestry and ecosystem commitments at the Rio + 20 conference. This further reinforces Disney’s commitment to nature and our belief that a healthy environment is essential to the health and well-being of children and families around the world.
Disney’s forest carbon work supplements Disney’s tradition of nature conservation through Disney’s Worldwide Conservation Fund.
Click on the image below to enlarge:
Additional Information: Disney Cruise Line Environmental Initiatives
- An innovative, low-resistance, 100% non-toxic hull coating that reduces drag and increases fuel efficiency
- Smart technology that self-adjusts temperatures and lighting throughout the ship
- Cold ironing capabilities, to utilize shore power where available (i.e., at the ports of Seattle, Alaska, and Los Angeles)
- Lighter building materials, such as fiber optic cables in place of traditional copper cabling
- Improved hydrodynamics to minimize fuel usage
- State-of-the-art gearless elevator hoisting technology that is 40% more efficient than standard elevators
- Overhead winch motors, used to raise and lower scenery for Disney’s shows, generate electricity during the lowering process which is fed back into the ship power grid
- Heat recovery systems to maximize energy use throughout the ship
- Highly efficient insulation and heat reflective paint reduces the need for heating, ventilation, and cooling systems by 25%
- Extensive use of LED lighting
- Route optimization software that helps the captain select the most energy-efficient route
Additional Information: Peru Alto Mayo Conservation Initiative
The project is located in the San Martin region of northern Peru within the Alto Mayo Protected Forest. Although the forest has protected status, the area has faced high rates of deforestation due to increasing pressures from illegal logging, migration of people into the region and unsustainable farming practices. To halt deforestation, Conservation International (CI) worked with local partners and government to craft conservation agreements with communities living in and around the forest. In exchange for participating in the conservation programs, communities received efficient cook stoves and support to increase the efficiency of farming practices. Educational programs were developed to help the area’s youth understand the significant local and global impacts of deforestation. In addition, by establishing new conservation-based agricultural practices and enhancing market access for their shade-grown coffee, farmers are seeing the economic value of forest protection. Finally, beyond the climate, livelihood, and habitat conservation benefits, the project is sustaining other critical ecosystems for local communities, including regulating water and preventing soil erosion.
Pursue renewable sources of electricity to reduce emissions from electricity
Disney’s diverse business operations require that renewable energy opportunities be evaluated based on many criteria, such as geography, cost, operational constraints, and regional incentives. Discussions with internal partners are underway to identify practical and cost-effective approaches to increasing the amount of renewables in our energy mix.
We continually research opportunities to include renewable and alternative energy sources in new projects. In 2012, our new parking structure in Glendale, California, was installed with a 460kW solar system that provides 12% of the energy use for the new building and its parking structure. It will generate approximately 750,000 kWh annually.
Send zero waste to landfills
We have a long-term vision of achieving zero waste. Meeting that goal will require minimizing waste, increasing and improving recycling and other disposal mitigation programs, and sourcing high-recycled content and highly recyclable products. We know we cannot meet this goal alone, so we will continue to partner with, engage, and educate our guests and consumers along our journey to achieving zero waste.
By 2013, decrease Parks and Resorts’ annual solid waste to landfill to 50% of 2006 baseline level
The 2006 baseline level refers to the total waste generated in 2006. In practical terms, this means decreasing our waste sent to landfill to levels below 136,000 tons per year. From 2009 through 2011, WDP&R sent to landfill less than 136,000 tons per year. In 2012, WDP&R sent 147,000 tons to landfill (53.9% of the 2006 baseline level) due to operational growth throughout the segment, particularly at Disney Cruise Line, Hong Kong Disneyland, and Disney California Adventure.
WDP&R continues to divert a significant amount of waste from landfills. In 2012, WDP&R achieved a 53.4% diversion rate through extensive recycling and donation programs, as well as by utilizing waste-to-energy facilities and innovative waste minimization programs. Examples include:
- Throughout the Disney California Expansion project at the Disneyland Resort, many efforts were taken to minimize waste sent to landfills and maximize charitable donations. For example, Lightning McQueen Power Wheel cars used in a promotional video for Cars Land were donated to local nonprofits that serve children and families. Walt Disney World Resort diverted material from landfills during five recent multiroom refurbishments at resort hotels. The refurbishments achieved “zero waste” status as defined by the Environmental Protection Agency and the Zero Waste Alliance.
- At Disneyland Paris, food waste sorting and collection began in 2009 and was extended in 2012 to all major restaurants throughout the Resort. The diverted food waste is then used to generate electricity.
- Hong Kong Disneyland (HKDL) recently launched a plastic bag recycling program to reuse the waste plastic bags generated from our daily operations. Unwanted plastic bags that are collected are recycled and reused for the production of new merchandise shopping bags. An environmental message has been printed on the bags to inspire our guests to support reuse and recycling.
By 2013, divert at least 80% of waste from landfill at the Summer X Games and 90% of waste from landfill at the ESPYs
The Summer X Games and ESPYs provide great venues for us to demonstrate our commitment to the environment, and we are focused on minimizing the waste generated from these major sporting events. We made progress in 2012 while achieving this target. By diverting and separating materials, we were able to achieve 90% diversion from the X Games and 85% diversion from the ESPYs. The biggest challenges we faced were getting people to properly divert at the source. We felt our signage was clear. Our next steps are to have a bigger green team to stand by the waste bins to help our guests make the right choice. This will save us time separating after the events.
|X Games waste stations and metal signage make it easy for fans to make the right choice.|
Have a net positive impact on ecosystems
Healthy ecosystems provide many benefits to Disney and the communities in which we work and live. We are focused on implementing an ecosystem management strategy designed to deliver a net positive impact on ecosystems.
By 2013, apply our integrated approach to sustainable design, engineering, and habitat protection for a pilot construction project
As part of our ecosystem management strategy, we are developing an integrated approach to designing new construction projects. It starts with identifying ecosystem impacts during the design-review process of new building projects. Next, habitat and restoration solutions are developed to avoid, minimize, or mitigate those impacts. Finally, we evaluate a set of sustainable design solutions for potential implementation. We will continue to develop and evolve our Ecosystems Integrated Approach as more scientific research becomes available.
During 2012, we identified and tested an ecosystem evaluation methodology on four recently completed projects. The methodology is being studied internally, and will be further refined through peer review.
Between 2009 and 2013, annually increase the level of support to nonprofit organizations from Disney Worldwide Conservation Fund
The Disney Worldwide Conservation Fund (DWCF), founded on Earth Day in 1995, provides financial support for the study of wildlife, the protection of habitats, and the development of community conservation and education programs in critical ecosystems around the world.
In 2012, the Disney Worldwide Conservation Fund distributed a total of $4,324,866 through its various programs, a 55% increase over the amount granted in the previous year. Funds for the DWCF are provided through a combination of guest contributions made at select Walt Disney Parks and Resorts (WDP&R) locations, a percentage of the proceeds from specific WDP&R merchandise and guest programs, and Disney direct contributions as well as those related to special initiatives like the DisneyNature film campaigns. For more details on the programs funded by DWCF in 2012, please go to our citizenship website.
Minimize water use
Disney recognizes the importance of water as a critical resource for our operations and the communities in which we operate. The purpose of our water goal is to ensure the sustainable use of water by Disney, now and into the future.
For more information on our efforts to minimize water use, see Recycling Water at World of Color on our citizenship website.
By 2012, Water Conservation Plans will be adopted to identify areas for water-conservation improvement at all major locations
The Water Conservation Plans identify current best management practices and serve as a tool for businesses to assess operations for areas where the greatest impact can be made through efficiencies and conservation to minimize water consumption. Businesses strive to conserve and use water efficiently. In order to reduce our water consumption, we are utilizing efficient fixtures, performing regular audits, and focusing on alternative supplies either through reusing water or by utilizing non-freshwater sources.
The theme parks have been leading the way to minimize the consumption of this limited resource by seeking alternative non-freshwater supplies and methods to recharge local sources. For over a decade, Walt Disney World has been using reclaimed water for 75%-80% of its irrigation needs. Disneyland Paris is proactively creating an alternative water supply by working with local suppliers to treat its wastewater. The treated water can be used for irrigation, cleaning, and filling of waterways at Disneyland Paris, reducing the demand on freshwater supplies. Hong Kong Disneyland maintains all flushing with seawater. At Disneyland Resort, a Water Quality Master Plan is in place to manage storm water runoff; by reducing storm water runoff thereby increasing infiltration to recharge the groundwater basin. Methods include designing features such as vegetated swales and pervious material to promote infiltration.
Besides the theme parks, the majority of Disney’s direct operations are office spaces. To minimize water consumption at these locations, our focus has been on efficient restrooms, reduction of water usage for irrigation, and improving water use in the cafeterias and kitchens. Examples of some of these practices include:
- Restrooms that feature low-flow plumbing fixtures such as faucet aerators.
- Irrigation approaches that utilize drip irrigation and flexible irrigation schedules based on weather conditions.
- Operational enhancements such as the replacement of cooling towers with new efficient models and the collection and reuse of condensate from air handlers for lower processes such as make-up water for cooling towers.
- Kitchens that feature the use of batch production in steam cooking and highly efficient pre-rinse spray valves in cleaning.
By evaluating current water consumption through a review of current efficiencies and practices, we can continue to develop water conservation measures that are meaningful and relevant to our operations now and in the future.
Minimize product footprint
In 2010, Disney developed a set of common approaches and targets to better measure our performance in minimizing our overall product footprint.
By 2014, demonstrate continued improvement in environmental performance for strategic suppliers in plush, apparel, accessories, and toys
Our company-wide targets are focused on two areas: (1) sourcing raw materials, especially paper; and (2) holding our suppliers to a high standard of environmental responsibility.
Disney strives to work with suppliers that are committed to environmental responsibility and are able to demonstrate improvement in environmental performance. Our immediate focus is on products Disney sells directly to consumers through The Disney Stores and merchandise in our theme parks. Products produced by third-party licensees will be addressed in a second phase. We have selected the plush, apparel, accessories, and toy product categories to be tracked for improvement because they represent a significant share of Disney’s product volume and involve many of our strategic suppliers.
In 2011, the Environmental Responsibility Index (ERI) survey was developed and sent to strategic suppliers8 in North America for The Disney Stores (TDS) and Disney Theme Park Merchandise (DTPM). The ERI survey asks selected factories a variety of questions and utilizes a weighted scoring system. The scores allow Disney to summarize and benchmark the performance of operations in key environmental areas,9and to set a baseline for measuring future improvements. We communicated the results of the 2011 survey to suppliers in order to share ideas for reducing environmental impacts of operations and the supply chain.
In 2012, the Environmental Responsibility Index survey was sent to an expanded list of strategic suppliers for Disney Stores (in North America, Japan, and Europe) and Disney Theme Park Merchandise (Walt Disney World, Disneyland Resort, Disneyland Paris, and Hong Kong Disneyland). The total number of suppliers surveyed increased significantly, from 162 in 2011, to 321 total in 2012.10
Key insights developed from the 2011 ERI survey and implemented in 2012 have enhanced the process and helped suppliers improve their environmental performance. For example, identifying and sharing best practices has been helpful to suppliers looking to reduce environmental impacts and achieve cost savings.
By 2012, Disney Stores North America will expand their commitment to organic cotton by making all Disney Baby apparel and sleepwear from 100% organic cotton
The Disney Store is committed to decreasing the environmental impacts of the products they produce in a way that brings higher quality and value to our guests. While our graphic t-shirts are already made from 100% organic cotton, The Disney Store is continually looking for ways to expand its commitment to organic cotton through other apparel lines where possible.
In 2012, we launched DisneyBaby.com and opened our first-ever Disney Baby Store in Glendale, California. All of the baby apparel and sleepwear sold in the new Disney Baby Store and in North American Disney Stores are made from 100% organic cotton. Disney Store’s commitment to organic cotton continues to grow with an expanded assortment of baby apparel and sleepwear made from 100% organic cotton for the 2012 holiday season.
|From Club Penguin memberships to Marvel action figures, Disney Princess dolls, and beloved Disney movies, Disney hospital care packages help bring smiles and laughter to thousands of kids each year.|
New Paper Targets
Throughout 2012, we developed guidelines for paper used in Disney’s day-to-day business operations as well as in our consumer products and packaging. Announced in October 2012, our policy aims to:
- Minimize the consumption of paper
- Eliminate paper products containing irresponsibly harvested fiber, such as fiber from High Conservation Value Areas11
- Maximize recycled content and fiber sourced from Forest Stewardship Council-certified forestry operations or equivalent
This policy continues Disney’s commitment to responsible forest practices and conservation, and will be implemented in two phases. The first phase will focus on paper sourced directly by Disney or on behalf of Disney for use in Disney-branded products and packaging. The second phase will address paper sourced by the Company’s independent licensees. Unlike the other targets, these new paper policy targets will operate on a calendar year time frame.
New Target: By 2012, communicate new paper policy and expectations to all suppliers, vendors, and licensees
Following the announcement of Disney’s Paper Sourcing and Use Policy on October 11, 2012, business units began informing their third-party suppliers, vendors, and licensees of the intent behind the policy and providing them with information about the new supplier survey process to come. Communication methods varied by business and included e-mails and announcements posted on vendor and supplier accessible portals.
New Target: By 2012, no fiber from unwanted sources (e.g., non-FSC certified fiber from high-risk regions) will be used by the North American Disney Book Group, Hyperion, and ESPN Magazine12
In 2011 and 2012, Disney used a third-party validator to conduct a survey and verify paper suppliers. Through the verification work conducted, and due to steps taken to manage the supply chain, the North American Disney Book Group, Hyperion, and ESPN Magazine met the target of not sourcing from unwanted sources.
New Target: By 2013, design and develop a prioritized paper tracking and verification process and system for Phase 1 that includes: (1) annual supplier source origin surveys, (2) annual random audits, (3) annual random fiber tests, and (4) verification of the sources of supplies from high-risk areas
Our initial focus will be to supplement existing measurement and reporting capacity with a new system to capture supply chain information related to paper use. This new system will provide invaluable data on fiber origins, recycled content, certified content (FSC and others), and use of paper products processed without chlorine or chlorine compounds. This data on paper use and sourcing will be critical to the development of future performance-based targets.
In 2012, we began the design and development of the new system to capture supply chain information related to paper use. This system will be implemented throughout 2013.
New Target: By 2014, implement the paper tracking and verification process and system for Phase 1 to support the continued reduction of unwanted sources and prioritizing reduction from high risk regions13
Once the system is developed (see target above), we plan to begin implementation of the new process and database by surveying suppliers of key paper product categories in 2014.
New Target: By 2015, begin reporting paper use and sources for Phase 1 in order to inform and set new quantifiable targets in 2016 for eliminating unwanted sources and maximizing recycled content and wood fiber sourced from forestry operations certified by the Forest Stewardship Council or an equivalent forest certification scheme
In 2015, Disney plans to start accumulating data from supplier surveys on the origin of certain categories of paper supplies. This data is expected to present a picture of how much paper the Company uses operationally and in our products and packaging. By the end of 2015, we plan to begin reporting on paper use and analyzing the data to inform and set new quantifiable targets in 2016. The work scheduled for 2015 and 2016 will begin once supplier survey results are received.
New Target: By 2013, incorporate paper policy principles into the design of paper products and product packaging
A key objective of the new paper policy is to use paper responsibly which includes incorporating the paper policy principles into the design of paper products and product packaging. By the end of 2013, we plan to incorporate paper policy principles into the design of paper products and product packaging.
New Target: By 2013, in collaboration with strategic suppliers and licensees, conduct a pilot study of a tracking and verification process that includes: (1) annual supplier source origin surveys and (2) annual random fiber tests. If fiber from unwanted sources is found as a result of the pilot study, coordinate with suppliers and/or licensees to identify how the fiber entered the supply chain and to determine feasible steps to eliminate it
Another key objective of the policy is to eliminate the use of paper fiber from unwanted sources. Disney will initially prioritize regions of the world with poor forest management and governance, high rates of deforestation, and violations of the rights of forest-dependent communities.
During 2011 and 2012, Disney conducted a pilot study on paper used in Disney’s day-to-day-business operations, Disney-branded consumer products, and packaging sourced by Disney. We also conducted an additional pilot with licensees across the globe.
Disney will collaborate with strategic suppliers and licensees to conduct annual pilot surveys and fiber tests. By the end of 2013, Disney plans to coordinate with suppliers and licensees to identify how any unwanted sources, if found, entered the supply chain and determine feasible steps to eliminate such sources.
New Target: By 2013, for paper we directly specify, begin requesting recycled and FSC-certified paper and paper products processed without chlorine or chlorine compounds and select these whenever they are available at a reasonable cost and quality
One finding from the initial pilot work conducted in 2011 and 2012 is that we may have the potential to increase the use of recycled and FSC-certified paper by simply asking suppliers for more of these options. Therefore, we will incorporate a new process in our sourcing steps to begin requesting these products and selecting them whenever they are available at a reasonable cost and quality.
By the end of 2013, we expect to have implemented a new sourcing process to request more recycled and FSC-certified paper and paper products processed without chlorine or chlorine compounds.